Microsoft has opened its India South Central cloud region in Hyderabad, a facility the company describes as one of its largest infrastructure investments in Asia. Puneet Chandok, President of Microsoft India and South Asia, confirmed the launch as part of a broader $20.5 billion investment commitment across the continent. The company did not specify the exact allocation for this specific region, leaving the precise capital outlay for Hyderabad undisclosed.
The move signals a strategic pivot toward heavy resource consumption and local integration. Chandok told The Times of India that the facility will use advanced air cooling to eliminate water usage for thermal management. He noted that Microsoft has already committed to one gigawatt of green energy, with 60 megawatts currently flowing, and is actively replenishing water sources near its data centers. However, the company has not disclosed the total power demand for the new region, making it difficult for analysts to verify those sustainability claims against actual energy draw.
The infrastructure push is paired with a massive human capital strategy. Chandok stated that Microsoft has trained 10 million people in India, with approximately 125,000 securing jobs through the program. The company now employs over 17,000 engineers across 10 Indian cities. This workforce expansion supports the growing demand for AI services, positioning Hyderabad as a critical node for the company’s global AI operations.
Government officials are watching the expansion closely for broader economic ripple effects. S Krishnan, Secretary of the Ministry of Electronics and Information Technology, urged Microsoft to expand its research and development operations in India beyond just data center hosting. He argued that global investment in AI infrastructure must translate into domestic capabilities for AI servers and semiconductors. Krishnan also suggested that future data centers should be located closer to electricity-generation centers rather than traditional connectivity hubs to optimize grid load. The next phase of this infrastructure rollout remains under review, with no specific timeline announced for additional regional expansions.